Within this issue we look at cases involving mortgage underfunding. This is the situation where someone with a repayment mortgage has paid the full repayment amount quoted by the lender – but subsequently discovers that the lender quoted an incorrect amount. It can often be several years before anyone realises that something is wrong. And by then, the borrower may have paid off much less of their mortgage capital than they thought. Our article examines the four most common areas of difficulty in the mortgage underfunding disputes that are referred to us, and explains the approach we take when deciding fair compensation.
Following the expansion of our jurisdiction last month to include insurance intermediaries, we set out the range of insurance intermediary activities that we now cover. We also explain the transitional arrangements for dealing with complaints when the event that is the subject of the complaint occurred before insurance intermediaries joined our jurisdiction.
Finally, our article "is compensation taxable-" explains – in broad terms – our understanding of some general principles relating to the tax treatment of any compensation that we award.
ombudsman news gives general information on the position at the date of publication. It is not a definitive statement of the law, our approach or our procedure.
The illustrative case studies are based broadly on real-life cases, but are not precedents. Individual cases are decided on their own facts.